AXIOS March 31, 2025
Elon Musk’s self-deal for his AI company xAI to acquire X, formerly Twitter, is the strongest sign yet that the AI business is devouring the social media world.
Between the lines: Musk’s move is a maneuver to spruce up his overall financial picture — leveraging the AI industry’s fizzy valuation arithmetic to shore up X’s stagnant revenue and debt-loaded capital structure.
- High expectations for xAI and every other AI darling are buoying the rest of the tech industry for now — but all that ends the moment the AI bubble bursts.
Why it matters: The entire social media world — including X, Meta-owned Facebook and Instagram, Google-owned YouTube, even the younger TikTok — has become a legacy platform.
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